FBT - Benchmark Interest Rates

The benchmark interest rate is used to calculate the taxable value of:

> a fringe benefit provided by way of a loan

> a car fringe benefit where an employer chooses to value the benefit using the operating cost method.

The statutory interest rate is set by reference to the standard variable rate for owner-occupied housing loans of the major banks that the Reserve Bank of Australia published most recently before the beginning of the FBT year (usually the February rate).